According to the entrepreneur, the outflow of funds from the platform was observed only within one day after the claim’s filing

​Justin Sun says the SEC case will have minimal impact on the Huobi exchange

27.03.2023 - 08:25

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3 min

What’s new? TRON blockchain founder and Huobi crypto exchange CEO Justin Sun said that the US Securities and Exchange Commission (SEC) charges against his projects did not cause serious consequences. For example, over one day after the claim’s filing, the net outflow of funds from Huobi was “only $30 million,” while a few days ago the exchange recorded a net inflow of deposits of $20 million. Sun added that this is a minor loss for the platform.

What else did Sun write? As for crypto activity, the head of Huobi said that the exchange saw a “wave of crazy output and a wave of coin withdrawals” amid a net deposit of $7 million.

According to Sun, the key metrics for Huobi’s growth are the daily inflow, the number of transactions, the volume of transactions, and liquidity. He also noted that the native token TRON (TRX) is used by 2 million investors every day, and the project team burns 7 billion TRX per year.

Sun stressed that Huobi never encourages users to use high leverage for short or long positions because the price fluctuations of digital currencies are extremely strong.

What is known about the SEC case against Sun? On March 22, the commission accused Sun and related companies the TRON Foundation, the BitTorrent Foundation, and BitTorrent (Rainberry) of selling and issuing unregistered securities, fraud, and market manipulation.

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The SEC also sued celebrities Lindsay Lohan, Jake Paul, Soulja Boy, Lil Yachty, Ne-Yo, Akon, and Michele Mason for illegal advertising of TRX and BTT. In this, most of them settled the charges.

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